Sardo Ltd. is a CCPC through the 2020 taxation year. It has a December 31 year end and is not associated with any other companies. Its $422,000 Net Income For Tax Purposes is made up of the following components: The foreign jurisdiction withheld $3,200 from the foreign non-business income. The Company receives a credit against federal Tax Payable for this amount.
The Company has a non-capital loss carry over of $96,000 that it intends to deduct during 2020.
Determine Sardo's small business deduction for the year ending December 31, 2020.

Question

Sardo Ltd. is a CCPC through the 2020 taxation year. It has a December 31 year end and is not associated with any other companies. Its $422,000 Net Income For Tax Purposes is made up of the following components:  The foreign jurisdiction withheld $3,200 from the foreign non-business income. The Company receives a credit against federal Tax Payable for this amount.
The Company has a non-capital loss carry over of $96,000 that it intends to deduct during 2020.
Determine Sardo's small business deduction for the year ending December 31, 2020.

Quizplus · Accepted Answer

The Answer of Sardo Ltd. is a CCPC through the 2020 taxation year. It has a December 31 year end and is not associated with any other companies. Its $422,000 Net Income For Tax Purposes is made up of the following components:  The foreign jurisdiction withheld $3,200 from the foreign non-business income. The Company receives a credit against federal Tax Payable for this amount.
The Company has a non-capital loss carry over of $96,000 that it intends to deduct during 2020.
Determine Sardo's small business deduction for the year ending December 31, 2020.

Sardo Ltd Is a CCPC Through the 2020 Taxation Year